Real Estate Developer Shai-Chai Prepares for IPO

The real estate company Shai-Chai is recognized as one of the most active participants in Israel Land Authority tenders. Following a merger last year designed to increase its land acquisition capacity, the company is now preparing for an IPO.

Shai-Chai, owned by Ofer Biton, is planning to go public within six months. Recently, Migdal provided the company with a 200 million shekel credit line. While headquartered in Karkur, Shai-Chai operates nationwide. The company has reportedly begun drafting its prospectus, with Discount Capital Underwriting expected to lead the offering.

Shai-Chai holds a diverse portfolio, including hotels and assisted living facilities, though the upcoming IPO is expected to focus primarily on its residential market operations. The company also maintains assets overseas.

Yesterday, the company won a tender in Ness Ziona for the construction of 258 housing units. The site is located in the southern part of the city, between HaTe'ena and Eden streets. The project is being executed by Euro - Shai-Chai Ltd., a joint venture established last year to bid on Israel Land Authority tenders.

The land was appraised at 209 million shekels. Due to a low minimum bid of approximately 28 million shekels, the tender saw high demand, attracting at least 21 companies. The final cost to the developer is 192 million shekels, comprising 170 million for the land and approximately 22 million in development expenses.

In recent months, the Tel Aviv Stock Exchange has seen a wave of real estate IPOs. The largest was that of Tidhar, led by CEO Uri Levin. Tidhar’s second-quarter reports showed an increase in revenue from apartment sales and the distribution of 56 million shekels in employee bonuses, defying reports of a market slowdown.